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PRESS RELEASE

PGT, the new photonics Company within the Group, to exhibit complete portfolio of full C- and L-band tunable transponders along with an extensive range of pluggable transceivers

Milan and San Diego, 26 February 2008 – Pirelli today announced that it is presenting PGT Photonics, a new Group company which will specialize in second generation photonics based on nanotechnologies, and displaying its comprehensive product offering which includes Pirelli’s DTL Tunable Laser, ITLA, 300-PIN MSA Transponders, and DWDM XFP Transceivers at the OFC/NFOEC exhibition and conference, taking place in San Diego, Calif., 24 – 28 February 2008.

PGT Photonics will have its headquarters in Milan along with its Sales office in Atlanta, Ga. Earlier this month, Pirelli announced the incorporation of a new company that would integrate the Photonics business unit of Pirelli Broadband Solutions and the Optical Innovation division of Pirelli Labs. The move is seen as a strategic initiative to generate greater synergies between R&D activities and the commercialization of Pirelli’s growing product portfolio of optical components and modules.

“The OFC/NFOEC exhibition and conference is the ideal platform to announce to the industry the name of our new company PGT Photonics,” said Claudio De Conto, General Manager for the Pirelli Group and Chairman for PGT Photonics. “With a more flexible structure suited for the Optical Communications sector, we will be more closely focusing on our core business while simultaneously leveraging our expertise in order to meet the needs of the marketplace in a timely manner.”

At the core of the tunable portfolio presented at the OFC/NFOEC is Pirelli’s Dynamically Tunable Laser: Telcordia GR-468-CORE qualified and hermetically sealed in a 26-pin butterfly package, providing increased reliability, a smaller footprint and a significant reduction in optical network costs. The Pirelli Integrable Tunable Laser Assembly (ITLA) allows telecoms operators to integrate tunability into their networks while reducing development costs and time to market. For further integration, Pirelli’s 300-PIN MSA transponders, available in multiple optical interfaces (NRZ, negative-chirp NRZ and Duobinary formats), extend the reach of metro networks to 350+ Km. All tunable solutions are available in full C-band and L-band coverage (40 nm/100 channels). On the pluggable side, Pirelli’s DWDM XFP Transceivers feature high output power and dispersion tolerance levels for 80 to 200+ Km distances, optimizing cost-performance ratios for network operators.

Notes to editors

1. A complete portfolio of Pirelli’s optical components and modules will be on display at the Pirelli stand – number 2049 – at the OFC/ NFOEC exhibition and conference, taking place in San Diego, 26-28 February 2008.

About Pirelli

Pirelli & C. SpA, listed on the Italian Stock Exchange, is the parent company of a multinational Group active in more than 160 countries with 135 years of industrial experience. Pirelli Tyre is the fifth tyre manufacturer in the world in terms of sales revenue and leader in the high-end segments of the market. Pirelli RE operates in real estate and has affirmed its leadership in Italy in just a few years. Pirelli RE has recently begun expansion in Central and Eastern Europe. Thanks to its technological leadership, in recent years the Pirelli Group has launched highly innovative start-up ventures in sectors such as photonics, broadband access, sustainable mobility and renewable energy. Pirelli Labs is the advanced research center at the services of all of Pirelli’s businesses.www.pirelli.com